Hilton Worldwide Holdings Inc (HLT)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,370,000 | 2,281,000 | 2,311,000 | 2,260,000 | 2,225,000 | 2,329,000 | 2,299,000 | 2,223,000 | 2,094,000 | 1,923,000 | 1,732,000 | 1,358,000 | 1,010,000 | 482,000 | 61,000 | -465,000 | -418,000 | 125,000 | 633,000 | 1,413,000 |
| Total assets | US$ in thousands | 16,522,000 | 16,689,000 | 15,737,000 | 15,932,000 | 15,401,000 | 15,200,000 | 15,297,000 | 15,211,000 | 15,512,000 | 15,508,000 | 15,382,000 | 15,459,000 | 15,441,000 | 15,314,000 | 15,090,000 | 15,974,000 | 16,755,000 | 17,129,000 | 17,126,000 | 15,788,000 |
| Operating ROA | 14.34% | 13.67% | 14.69% | 14.19% | 14.45% | 15.32% | 15.03% | 14.61% | 13.50% | 12.40% | 11.26% | 8.78% | 6.54% | 3.15% | 0.40% | -2.91% | -2.49% | 0.73% | 3.70% | 8.95% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,370,000K ÷ $16,522,000K
= 14.34%
The operating return on assets (operating ROA) for Hilton Worldwide Holdings Inc has shown fluctuations over the stated periods.
The operating ROA started at 8.95% as of March 31, 2020, showing a moderate level of profitability generated from the company's operational assets. However, this metric decreased to 3.70% by June 30, 2020, indicating a decline in the efficiency of asset utilization in generating operating income.
Subsequently, the operating ROA further declined to 0.73% as of September 30, 2020, signaling potential challenges in generating profits from the company's assets. A significant negative trend continued as of December 31, 2020, with the operating ROA decreasing to -2.49%, suggesting a significant decline in operational efficiency and profitability.
The negative trend persisted into the first quarter of 2021, with the operating ROA falling to -2.91%, indicating ongoing challenges in generating operating income relative to the asset base. However, there was a slight improvement in the operating ROA to 0.40% by June 30, 2021, signaling a potential turnaround in asset utilization efficiency.
As of September 30, 2021, the operating ROA increased to 3.15%, indicating a positive trend in profitability generated from operational assets. This improvement continued, with the operating ROA rising to 6.54% by December 31, 2021, suggesting a recovery in operational efficiency and profitability.
The positive trend continued into the following periods, with the operating ROA increasing to 8.78% as of March 31, 2022, and further to 11.26% by June 30, 2022, indicating improved profitability relative to the asset base. Subsequently, the operating ROA continued to rise, reaching 15.32% as of September 30, 2023, showing a significant improvement in operational efficiency and profitability.
However, the operating ROA slightly declined to 13.67% by September 30, 2024, suggesting a potential slowdown in the efficiency of asset utilization in generating operating income. Despite this, the metric rebounded to 14.34% by December 31, 2024, indicating a reasonably healthy level of profitability generated from the company's operational assets.
In conclusion, the operating ROA for Hilton Worldwide Holdings Inc reflects fluctuations over the periods analyzed, with periods of both decline and improvement in operational efficiency and profitability. Monitoring this metric is essential for assessing the company's ability to generate profits from its operational assets effectively.
Peer comparison
Dec 31, 2024